Reliance buy to deepen MSME ties
Reliance Industries Ltd (RIL) on Thursday announced that its subsidiary has picked up an 85 per cent stake in NowFloats Technologies for a cash consideration of Rs 141.63 crore.
The stake purchase is expected to strengthen the group’s digital and new commerce initiatives among MSMEs.
“Reliance Strategic Business Ventures Ltd (RSBVL), a wholly owned subsidiary of RIL, has acquired the equity shares of NowFloats Technologies for a cash consideration of Rs 141,63,78,822. The said investment represents 85 per cent holding in the equity share capital of NowFloats,” the Mukesh D. Ambani company said in a regulatory filing to the stock exchanges. The RIL stock posted marginal gains to settle at Rs 1,567.50.
The RIL statement added that RSBVL proposes to make a further investment of up to Rs 75 crore, subject to achieving agreed milestones, and is expected to be completed by December 2020. Post the additional investment, the shareholding of RSBVL in NowFloats will increase to 89.66 per cent.
“The investment will further enable the group’s digital and new commerce initiatives,” the filing said.